Second Mortgage Zero Balance

Hi Paul,

We sold our house in Arizona as a short sale.  We had a second mortgage on the property. We paid the back interest on the second and started making the mortgage payments.  Due to a 30% reduction in pay we could not keep up the second mortgage payments. 

We asked the bamk if they would re-negotiate our payments.  However, they weren’t willing to do this.  We didn’t make a payment on the loan the past two months. 

I just logged into my account and went to make a payment and it stated a zero balance and that the loan had been charged off.  I’m not sure what to do now? I could make half the loan payment for 3 years then start making the full payment since I will have other debt paid off by then.

Not sure why they would charge it off instead of lowering my payment for the short term. Should I contact the bank?  I haven’t received anything in the mail regarding the loan charge off.

Annemarie

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Hi Annemarie,

I’m a little puzzled myself on why it would list a zero balance.  It may have been charged off and sold to a junk debt buyer or perhaps it was considered a settlement in full.

I’d probably let sleeping dogs be for now.  If another entity picks up this account then be aware of your validation rights.

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.